And I still say we will see hyperinflation very soon. The current policies of the Fed are doomed.
Just look who profits the most of these interventions….and suddenly the greater picture suggests that the Fed wants to destroy the dollar and the economy (especially the middle class) intentionally.
Do some research – if you not already have – on who created the Fed and find out the ulterior motive of this monster from Jekyll Island. You may watch Zeitgeist, The Movie, Final Edition especially Part III of the movie which starts at 1:14:30 .
The Fed is creating ‘the worst case scenario’ and it is absolutely correct that “we are beyond the extremes of the 1930s.”
Debt deflation is tightening its grip over the entire global system. Interest rates are creeping towards zero in Japan, America, and now across most of Europe.
We are beyond the extremes of the 1930s. The frontiers of monetary policy are being pushed to limits that may now test viability of paper currencies and modern central banking.
You cannot drop below zero. So what next if the credit markets refuse to thaw? Yes, Japan visited and survived this policy Hell during its lost decade, but that was a local affair in an otherwise booming global economy. It tells us nothing.
This time we are all going down together. There is no deus ex machina to lift us out. Certainly not China, which is the most vulnerable of all.
As the risk grows, officials at the highest level of the British Government have begun to circulate a six-year-old speech by Ben Bernanke – at the time of its writing, a garrulous kid governor at the US Federal Reserve. Entitled Deflation: Making Sure It Doesn’t Happen Here, it is the manual of guerrilla tactics for defeating slumps by monetary means.
“The US government has a technology, called a printing press, that allows it to produce as many US dollars as it wishes at essentially no cost,” he said.
Critics had great fun with this when Bernanke later became Fed chief. But the speech is best seen as a thought experiment by a Princeton professor thinking aloud during the deflation mini-scare of 2002.